Business groups support cuts to tax credits

Yves-Thomas Dorval

A number of business associations say they would support a government effort to get rid of some tax credits and financial aide programs for companies.

The Liberal government has been warning for months that tough decisions will have to be made in their next budget.

Business groups say they support the government's initiative toward a balanced budget, and that includes eliminating some of their own programs.

"What we know is Quebec gives double the amount of aide to businesses, for example, compared to Ontario. And we're forced to note that it's not giving better results. If that works, we'd know," says Martine Hébert, senior vice-president for the Canadian federation of independent business.

At the same time, the groups say the reduction in programs should be balanced by a better overall tax environment, such as a lower payroll tax.

Quebec currently has more than 160 programs for various types of companies. Yves-Thomas Dorval, from Quebec's employer's council, says its time to look at which ones are really working.

"Financial aide is important, but it has to be directed in environments that bring results," he says.

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